Walmart’s Closing the Amazon Online Sales Gap

Walmart’s online business is no longer defined by how far it trails Amazon, but by how quickly it is changing the structure of the retail race.

That is the central insight of “Walmart Aims at Closing Amazon Online Sales Gap,” the latest edition of the PYMNTS Intelligence “Share of Wallet: Amazon vs. Walmart” series. The report examines how the two largest U.S. retailers capture online consumer spending and how their strategies are diverging as digital commerce matures.

The report demonstrates that Amazon remains the clear leader in scale. Walmart, however, is compressing the distance through steady gains that reflect a broader shift in how Americans shop for essentials.

The headline numbers confirm Amazon’s dominance. In the third quarter of 2025, Amazon captured more than half of all U.S. eCommerce retail spending. Walmart’s share remained below 10%.

Yet those figures alone miss the story forming underneath. Walmart’s online sales now account for roughly one-fifth of its total U.S. business, a share that has nearly doubled since early 2022. Over the same period, Walmart’s eCommerce growth has outpaced Amazon’s by a wide margin. The result is not a reversal of leadership, but a narrowing of trajectories.

Several data points illustrate how the balance is shifting.

Amazon captured 56% of total U.S. online retail spending in Q3 2025, compared with Walmart’s 9.6% share.

Walmart’s eCommerce sales grew 27.2% year over year in the third quarter, nearly three times Amazon’s 9.6% growth rate.

Since Q1 2022, Walmart’s online sales have increased by 115.6%, compared with 63.2% growth for Amazon over the same period.

Beyond market share, the report highlights how category mix is shaping each company’s digital future. Amazon has built commanding positions in discretionary segments such as books, media, sporting goods and consumer electronics, where its online share exceeds 60% and in some cases reaches more than 75%.

In those categories, Amazon effectively defines the digital marketplace. Walmart’s advantage lies elsewhere. Food and beverage remain the largest and most contested battleground, and Amazon still controls only about 14% of online grocery spending. Walmart’s physical scale and role as a primary food supplier give it a structural edge as grocery buying shifts online.

The pace of growth also reflects different rhythms. Amazon’s online sales follow the retail calendar, spiking around Prime Day and the holiday season. Walmart’s growth is steadier, mirroring its focus on everyday needs rather than episodic spending. That consistency has allowed Walmart to convert store traffic into digital adoption through pickup, delivery and omnichannel fulfillment. Online shopping becomes part of routine household behavior rather than an event.

The report also underscores that this race is not only about technology investment. It is about economics and trust. Walmart’s expansion online has been fueled by its ability to leverage a nationwide store network to reduce delivery costs and improve speed. Amazon continues to rely on scale, logistics density and marketplace breadth.

Each approach produces different margins, different customer expectations and different risks.

Taken together, the findings suggest that the U.S. eCommerce market is entering a phase where leadership is stable but competitive pressure is rising. Amazon remains the largest player by a wide margin. Walmart is not replacing it. Walmart is redefining itself.

That shift matters for brands, suppliers and payment providers that depend on where and how consumers choose to spend online. The gap is still wide. The direction is clear.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.